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The Economics of Land Markets and their Regulation
This important volume brings together seminal papers investigating the framework upon which the economic analysis of land markets is based, stretching from the earliest insights of the founding fathers to current debates and research. Recent work on the process and implications of ''land value capitalisation'' and land use regulation is well represented, for due to capitalisation, land is responsible for far more of the distribution of real incomes than is widely recognised. This collection settles this, restoring the study of land markets to its rightful place - central to economic understanding.
More Information
Critical Acclaim
Contributors
Contents
More Information
This important volume brings together seminal papers investigating the framework upon which the economic analysis of land markets is based, stretching from the earliest insights of the founding fathers to current debates and research. Recent work on the process and implications of ''land value capitalisation'' and land use regulation is well represented, for due to capitalisation, land is responsible for far more of the distribution of real incomes than is widely recognised. This collection settles this, restoring the study of land markets to its rightful place - central to economic understanding.
With an original introduction by the editors this insightful collection is an essential reference point for students, researchers and policymakers.
With an original introduction by the editors this insightful collection is an essential reference point for students, researchers and policymakers.
Critical Acclaim
‘Paul Cheshire and Christian Hilber have put together the “go-to” collection for any student interested in land market regulations and their effects. This volume gathers all the classics on the topic over the last sixty years with a welcome focus on recent developments in this active area of research. This collected volume is also very usefully supplemented by an insightful introduction by the two editors.’
– Gilles Duranton, University of Pennsylvania, US
– Gilles Duranton, University of Pennsylvania, US
Contributors
34 articles, dating from 1956 to 2016
Contributors include: R. Arnott, E. Glaeser, R.W. Helsley, W. Oates, P. Samuelson, W.C. Wheaton
Contributors include: R. Arnott, E. Glaeser, R.W. Helsley, W. Oates, P. Samuelson, W.C. Wheaton
Contents
Contents:
Acknowledgements
Introduction Paul C. Cheshire and Christian A.L. Hilber
PART I FOUNDATIONS AND ANALYTICAL ORIGINS
1. Paul A. Samuelson (1983), ‘Thünen at Two Hundred’, Journal of Economic Literature, XXI (4), December, 1468–88
2. Colin Clark (1967), ‘Von Thünen’s Isolated State’, Oxford Economic Papers, New Series, 19 (3), November, 370–77
3. William Alonso (1960), ‘A Theory of the Urban Land Market’, Papers and Proceedings of the Regional Science Association, 6 (1), January, 149–57
4. Edwin S. Mills (1967), ‘An Aggregative Model of Resource Allocation in a Metropolitan Area’, American Economic Review, 57 (2), May, 197–210
5. Dennis R. Capozza and Robert W. Helsley (1989), ‘The Fundamentals of Land Prices and Urban Growth’, Journal of Urban Economics, 26 (3), November, 295–306
PART II BEYOND THE MONOCENTRIC MODEL
6. Peter Mieszkowski and Edwin S. Mills (1993), ‘The Causes of Metropolitan Suburbanization’, Journal of Economic Perspectives, 7 (3), Summer, 135-47
7. Sheridan Titman (1985), ‘Urban Land Prices under Uncertainty’, American Economic Review, 75 (3), June, 505–14
8. Dennis R. Capozza and Robert W. Helsley (1990), ‘The Stochastic City’, Journal of Urban Economics, 28 (2), September, 187–203
9. Laarni Bulan, Christopher Mayer and C. Tsuriel Somerville (2009), ‘Irreversible Investment, Real Options, and Competition: Evidence from Real Estate Development’, Journal of Urban Economics, 65 (3), May, 237–51
10. William C. Wheaton (2004), ‘Commuting, Congestion, and Employment Dispersal in Cities with Mixed Land Use’, Journal of Urban Economics, 55 (3), May, 417–38
11. John F. McDonald and Daniel P. McMillen (2000), ‘Employment Subcenters and Subsequent Real Estate Development in Suburban Chicago’, Journal of Urban Economics, 48 (1), July, 135–57
12. Marcy Burchfield, Henry G. Overman, Diego Puga and Matthew A. Turner (2006), ‘Causes of Sprawl: A Portrait from Space’, Quarterly Journal of Economics, 121 (2), May, 587–633
13. Stuart S. Rosenthal and Robert W. Helsley (1994), ‘Redevelopment and the Urban Land Price Gradient’, Journal of Urban Economics, 35 (2), March, 182–200
14. Edward L. Glaeser and Joseph Gyourko (2005), ‘Urban Decline and Durable Housing’, Journal of Political Economy, 113 (2), April, 345–75
15. Hans R.A. Koster, Jos van Ommeron and Piet Rietveld (2014), ‘Is the Sky the Limit? High-rise Buildings and Office Rents’, Journal of Economic Geography, 14 (1), January, 125–53
PART III WHAT GETS CAPITALISED?
16. Paul Cheshire and Stephen Sheppard (2004), ‘Capitalising the Value of Free Schools: The Impact of Supply Characteristics and Uncertainty’, Economic Journal, 114, November, F397–F424
17. Soren T. Anderson and Sarah E. West (2006), ‘Open Space, Residential Property Values, and Spatial Context’, Regional Science and Urban Economics, 36 (6), November, 773–89
18. Stephen Gibbons and Stephen Machin (2005), ‘Valuing Rail Access Using Transport Innovations’, Journal of Urban Economics, 57 (1), January, 148–69
19. Nicolai V. Kuminoff and Jaren C. Pope (2014), ‘Do “Capitalization Effects” for Public Goods Reveal the Public’s Willingness to Pay?’, International Economic Review, 55 (4), November, 1227–50
20. Andreas Mense and Konstantin A. Kholodilin (2014), ‘Noise Expectations and House Prices: The Reaction of Property Prices to an Airport Expansion’, Annals of Regional Science, 52 (3), May, 763–97
PART IV REGULATING LAND MARKETS
21. Paul Cheshire and Stephen Sheppard (2002), ‘The Welfare Economics of Land Use Planning’, Journal of Urban Economics, 52 (2), September, 242–69
22. William A. Fischel (2001), ‘Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax’, National Tax Journal, LIV (1), March, 157–73
23. Albert Saiz (2010), ‘The Geographic Determinants of Housing Supply’, Quarterly Journal of Economics, 125 (3), August, 1253–96
24. Edward L. Glaeser and Bryce A. Ward (2009), ‘The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston’, Journal of Urban Economics, 65 (3), May, 265–78
25. Edward L. Glaeser, Joseph Gyourko and Raven Saks (2005), ‘Why is Manhattan so Expensive? Regulation and the Rise in Housing Prices’, Journal of Law and Economics, XLVIII, October, 331–69
26. Christian A.L. Hilber and Frédéric Robert-Nicoud (2013), ‘On the Origins of Land Use Regulations: Theory and Evidence from US Metro Areas’, Journal of Urban Economics, 75, May, 29–43
27. John M. Quigley and Steven Raphael (2005), ‘Regulation and the High Cost of Housing in California’, American Economic Review, 95 (2), May, 323–8
28. Paul Cheshire and Christian Hilber (2008), ‘Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge’, Economic Journal, 118, June, F185–F221
29. Christian A.L. Hilber and Wouter Vermeulen (2016), ‘The Impact of Supply Constraints on House Prices in England’, Economic Journal, 126 (591), March, 358-405
PART V TAXES AND LOCAL PUBLIC GOODS
30. Richard J. Arnott and Joseph E. Stiglitz (1979), ‘Aggregate Land Rents, Expenditure on Public Goods, and Optimal City Size’, Quarterly Journal of Economics, XCIII (4), November, 471–500
31. Jan K. Brueckner (1982), ‘A Test for Allocative Efficiency in the Local Public Sector’, Journal of Public Economics, 19 (3), December, 311–31
32. Charles M. Tiebout (1956), ‘A Pure Theory of Local Expenditures’, Journal of Political Economy, 64 (5), October, 416–24
33. Wallace E. Oates (1969), ‘The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis’, Journal of Political Economy, 77 (6), November–December, 957–71
34. H. Spencer Banzhaf and Randall P. Walsh (2008), ‘Do People Vote with Their Feet? An Empirical Test of Tiebout’s Mechanism’, American Economic Review, 98 (3), June, 843–63
Index
Acknowledgements
Introduction Paul C. Cheshire and Christian A.L. Hilber
PART I FOUNDATIONS AND ANALYTICAL ORIGINS
1. Paul A. Samuelson (1983), ‘Thünen at Two Hundred’, Journal of Economic Literature, XXI (4), December, 1468–88
2. Colin Clark (1967), ‘Von Thünen’s Isolated State’, Oxford Economic Papers, New Series, 19 (3), November, 370–77
3. William Alonso (1960), ‘A Theory of the Urban Land Market’, Papers and Proceedings of the Regional Science Association, 6 (1), January, 149–57
4. Edwin S. Mills (1967), ‘An Aggregative Model of Resource Allocation in a Metropolitan Area’, American Economic Review, 57 (2), May, 197–210
5. Dennis R. Capozza and Robert W. Helsley (1989), ‘The Fundamentals of Land Prices and Urban Growth’, Journal of Urban Economics, 26 (3), November, 295–306
PART II BEYOND THE MONOCENTRIC MODEL
6. Peter Mieszkowski and Edwin S. Mills (1993), ‘The Causes of Metropolitan Suburbanization’, Journal of Economic Perspectives, 7 (3), Summer, 135-47
7. Sheridan Titman (1985), ‘Urban Land Prices under Uncertainty’, American Economic Review, 75 (3), June, 505–14
8. Dennis R. Capozza and Robert W. Helsley (1990), ‘The Stochastic City’, Journal of Urban Economics, 28 (2), September, 187–203
9. Laarni Bulan, Christopher Mayer and C. Tsuriel Somerville (2009), ‘Irreversible Investment, Real Options, and Competition: Evidence from Real Estate Development’, Journal of Urban Economics, 65 (3), May, 237–51
10. William C. Wheaton (2004), ‘Commuting, Congestion, and Employment Dispersal in Cities with Mixed Land Use’, Journal of Urban Economics, 55 (3), May, 417–38
11. John F. McDonald and Daniel P. McMillen (2000), ‘Employment Subcenters and Subsequent Real Estate Development in Suburban Chicago’, Journal of Urban Economics, 48 (1), July, 135–57
12. Marcy Burchfield, Henry G. Overman, Diego Puga and Matthew A. Turner (2006), ‘Causes of Sprawl: A Portrait from Space’, Quarterly Journal of Economics, 121 (2), May, 587–633
13. Stuart S. Rosenthal and Robert W. Helsley (1994), ‘Redevelopment and the Urban Land Price Gradient’, Journal of Urban Economics, 35 (2), March, 182–200
14. Edward L. Glaeser and Joseph Gyourko (2005), ‘Urban Decline and Durable Housing’, Journal of Political Economy, 113 (2), April, 345–75
15. Hans R.A. Koster, Jos van Ommeron and Piet Rietveld (2014), ‘Is the Sky the Limit? High-rise Buildings and Office Rents’, Journal of Economic Geography, 14 (1), January, 125–53
PART III WHAT GETS CAPITALISED?
16. Paul Cheshire and Stephen Sheppard (2004), ‘Capitalising the Value of Free Schools: The Impact of Supply Characteristics and Uncertainty’, Economic Journal, 114, November, F397–F424
17. Soren T. Anderson and Sarah E. West (2006), ‘Open Space, Residential Property Values, and Spatial Context’, Regional Science and Urban Economics, 36 (6), November, 773–89
18. Stephen Gibbons and Stephen Machin (2005), ‘Valuing Rail Access Using Transport Innovations’, Journal of Urban Economics, 57 (1), January, 148–69
19. Nicolai V. Kuminoff and Jaren C. Pope (2014), ‘Do “Capitalization Effects” for Public Goods Reveal the Public’s Willingness to Pay?’, International Economic Review, 55 (4), November, 1227–50
20. Andreas Mense and Konstantin A. Kholodilin (2014), ‘Noise Expectations and House Prices: The Reaction of Property Prices to an Airport Expansion’, Annals of Regional Science, 52 (3), May, 763–97
PART IV REGULATING LAND MARKETS
21. Paul Cheshire and Stephen Sheppard (2002), ‘The Welfare Economics of Land Use Planning’, Journal of Urban Economics, 52 (2), September, 242–69
22. William A. Fischel (2001), ‘Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax’, National Tax Journal, LIV (1), March, 157–73
23. Albert Saiz (2010), ‘The Geographic Determinants of Housing Supply’, Quarterly Journal of Economics, 125 (3), August, 1253–96
24. Edward L. Glaeser and Bryce A. Ward (2009), ‘The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston’, Journal of Urban Economics, 65 (3), May, 265–78
25. Edward L. Glaeser, Joseph Gyourko and Raven Saks (2005), ‘Why is Manhattan so Expensive? Regulation and the Rise in Housing Prices’, Journal of Law and Economics, XLVIII, October, 331–69
26. Christian A.L. Hilber and Frédéric Robert-Nicoud (2013), ‘On the Origins of Land Use Regulations: Theory and Evidence from US Metro Areas’, Journal of Urban Economics, 75, May, 29–43
27. John M. Quigley and Steven Raphael (2005), ‘Regulation and the High Cost of Housing in California’, American Economic Review, 95 (2), May, 323–8
28. Paul Cheshire and Christian Hilber (2008), ‘Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge’, Economic Journal, 118, June, F185–F221
29. Christian A.L. Hilber and Wouter Vermeulen (2016), ‘The Impact of Supply Constraints on House Prices in England’, Economic Journal, 126 (591), March, 358-405
PART V TAXES AND LOCAL PUBLIC GOODS
30. Richard J. Arnott and Joseph E. Stiglitz (1979), ‘Aggregate Land Rents, Expenditure on Public Goods, and Optimal City Size’, Quarterly Journal of Economics, XCIII (4), November, 471–500
31. Jan K. Brueckner (1982), ‘A Test for Allocative Efficiency in the Local Public Sector’, Journal of Public Economics, 19 (3), December, 311–31
32. Charles M. Tiebout (1956), ‘A Pure Theory of Local Expenditures’, Journal of Political Economy, 64 (5), October, 416–24
33. Wallace E. Oates (1969), ‘The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis’, Journal of Political Economy, 77 (6), November–December, 957–71
34. H. Spencer Banzhaf and Randall P. Walsh (2008), ‘Do People Vote with Their Feet? An Empirical Test of Tiebout’s Mechanism’, American Economic Review, 98 (3), June, 843–63
Index
